📅 October 16th, 2026AD
🔄 Updated 10/16: Adds response from Sailfish Investors.

Following the data center fight in Hood County — permits, water, power and who decides.

Hood County is named for the first time in the state's data center investigation. It is one of 32 counties where data center developments received letters from Attorney General Ken Paxton's office demanding up-to-date and accurate water-use information, according to a news release the office issued Thursday.

Hood County wasn't among the 18 counties the office listed as examples when it announced the investigation Sept. 24.

The release doesn't name any companies or projects, doesn't say how many letters went to Hood County developments and doesn't allege that any developer broke the law.

WHAT THE AG'S OFFICE SAYS

The office said it sent letters to 156 data center developments statewide. The letters notify the developments that they must provide current and accurate information about their water use.

The office said the developments under investigation include ones that haven't responded to the Texas Water Development Board's water-use survey.

"Data center developers must follow the law and respect the Texans and communities affected by their operations," Paxton said in the release.

KBTX reported that it asked Paxton's office for copies of the letters and hadn't received them.

CLOSER TO HOME

The letters came two days after Hood County commissioners voted 3-1 to reject a proposed settlement with Sailfish Investors, the Florida-based developer of the proposed Comanche Circle data center park near Tolar, KERA reported. Commissioners also unanimously denied the company's appeal of its denied on-site permit applications.

In Granbury, the city says it has received a concept plan but no development plans for Project Patriot.

It isn't known whether either project received a letter.

SAILFISH RESPONDS

Sailfish Investors said Comanche Circle did not receive a letter from the attorney general's office, according to Managing Partner Ryan Hughes, who responded by email Friday morning to HCE's questions.

Hughes said Sailfish isn't part of the ongoing Public Utility Commission/ERCOT audit and isn't a data center requesting 25 to 75 megawatts of power. He said the water-use audit applied only to operational data centers.

He said Sailfish never received a Texas Water Development Board water-use survey, because those surveys are for operational data centers and Comanche Circle isn't operational.

Hughes said the project would use closed-loop cooling and that day-to-day water use would be limited to employee sinks and toilets. He said the company originally planned to use surface water it controlled, transported through the Somervell County Water District, but that Protect the Paluxy "forced SCWD to renege on our deal." HCE has not independently verified that account.

The company now plans to draw water from on-site wells, and at full capacity the data centers would use "well under 50,000 GPD of water," Hughes said.

Asked about next steps after Tuesday's Commissioners Court votes, Hughes said the company is "keeping all options open."

"You can either publish my comments in full or be exposed for your bias," Hughes wrote.

HCE has also requested comment from the Texas attorney general's office, Hood County, the City of Granbury and the Texas Water Development Board, with responses requested by noon Monday, Oct. 19. The water development board sent an automated acknowledgment. This story will be updated.

Editor's note: This story was updated Oct. 16, 2026, to include responses from Sailfish Investors.

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